Alam Maritim Bhd (RM0.68/share) Sails into better times courtesy of some RM2bil contracts it has bid

Alam Maritim Resources Bhd is sailing into better times in relation to its offshore support vessels (OSVs) and offshore installation and construction (OIC) segments this year, courtesy of some RM2bil contracts it has bid. According to managing director and chief executive officer Azmi Ahmad their success rate was between 20% and 25%. This will add to Alam Maritim’s current order book of about RM800mil, of
which 80% consists of long-term charter contracts.

Azmi said a portion of the tender results had been announced in the last quarter of 2012, with the balance expected to be awarded this quarter. Azmi added that the average daily charter rate was US$1.80-US$2.00 per brake horse power (bhp). On the price of oil, Azmi said it was currently hovering between US$90 and US$110 per barrel and was expected to stay within this range this year. Azmi expects some challenges to come in the form of financing the new acquisition of vessels. He added that the short supply of competent crew was another challenge faced by many players. – StarBiz